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Cost Effective Program and Service Design

Cost Effective Program and Service Design Using the Third Party/Fourth Party Logistics Concept to Design Innovative Programs and Services that Facilitate Mobility and Access in Rural Areas Marc Scott PhD Student in Transportation and Logistics Small Urban & Rural Transit Center

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Cost Effective Program and Service Design

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  1. Cost Effective Program and Service Design Using the Third Party/Fourth Party Logistics Concept to Design Innovative Programs and Services that Facilitate Mobility and Access in Rural Areas Marc Scott PhD Student in Transportation and Logistics Small Urban & Rural Transit Center North Dakota State University

  2. At a Glance Rural Transportation – “State of Affairs” • More than a 33% of US population live outside of urbanized areas1 • Rural residents comprise 27% of US population2 • Public transportation is non-existent for 41% of rural residents2 • 25% of rural residents get inadequate service (< 25 trips per year)2 • 91 million people live in areas eligible for Section 5311 funding • More than 33% of rural residents are transportation dependent2 • Rural areas get 4.5% of general Federal transportation funds1 1 Surface Transportation Policy Project (2006) 2 Rural Institute, University of Montana (1999)

  3. Rural Transportation – Specific Challenges Present / Short-Term Long-Term / Forecasted “Age Wave”: 20% of US population will be 65 and over by 20254 Considerations in Service Design Global Competitiveness: Highly Mobilized Workforce Reduce Outsourcing Section 5310 Challenges3: • Non-Profits Service Clientele Exclusively (Non-Maximized Capacity) • Potential Riders Excluded Based on Disability Type Job Access: • Spatial Mismatch • System Wide Cost-Effective Access Management (Decision Making): • Lack of Coordination 3Seekins, Pepper, Sticka (2007) 4 APTA (2007)

  4. Rural Transportation – Strategic Solutions Present / Short-Term Long-Term / Forecasted Increased Rural Funding Re-weighted and Re-structured Funding Formulas • Policy and Regulation: • 5310 Administration and Fund Allocation • Resource Allocation: • Optimizing Asset Allocation and Employment • Service and Program Redesign: • Management Structure • Reporting

  5. Rural Transportation –“Outsourcing Concept” 3PL and 4PL Providers Applied in Rural Scenario Specifically Skilled Labor Shortage of Resources e.g. Rolling Stock, Facilities, Materials etc. More Coordination Need – Cost Savings, Better Asset Utilization, and System Wide Information Sharing • 3PL – Perform a Function on Behalf of a Company or Agency • 4PL – Manages a Company’s or Agency’s 3PL Activities • Commodities Provided: 3PL – Labor, Space, and Time 4PL – Dynamic Management

  6. Rural Transportation –“Chameleon Program” Goal:Maximize Mobility through Coordination Objectives:Development of Funding, Asset, and Information Sharing Programs and Initiatives Partners: • Federal Transit Administration (4PL) • Centralized Coordination Management • State / Local Agency (3PL) • Decentralized Coordination Execution • Designated State or Local body e.g. RPO, Research Institute, DOT etc. • Providers • Public / Private / Non-Profit • Focus on Provision of Service • Spend Less Time in Actual Coordination and More in Transportation

  7. Program Services Provided Rural Transportation –“Chameleon Program” • CoordinationServices • Schedules, Areas, Target Groups, Pool Purchases, Fund Pools for Asset Acquisition, Customer Feedback Across System, and Brokerage of Rides • Business Services • Marketing and Pricing Advisory Services • Management / Operations Advisory Services • Research and Development • Collect and Analyze Data • Develop Case Studies for Future Analysis • Initiate Opportunities for Technology and Best-Practice Transfer

  8. Key Framework Components Rural Transportation –“Chameleon Program” • Labor • FTA – Trained and Seconded to Local Agency • Consultant – Hired to Administer Program • Funding • Grants (Formula) • Tax (Specific – Ballot) • PPP’s • Regulation • Participant Dedicates Funding • Program in TIP, STIP, LRTP

  9. Value Added Rural Transportation –“Chameleon Program” • A centrally managed federal program - rural public transportation issues and solutions • A decentralized execution structure that fosters system-wide understanding and leverages resources • Relative low implementation, operational, and maintenance costs • Maximizes intellectual capital resources

  10. Rural Transportation –“Chameleon Program” Questions and Comments ?

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